Solace: The Fundamentals

Why was Solace Built?
Decentralized Finance (DeFi) is one of the fastest growing industries in the world, and will continue to grow over the next 15 years. However, like any rapidly growing industry, growing pains ensue. For DeFi, one major pain is the hacks and exploits that take advantage of non-battle tested smart contracts.

In the last year alone, 76% of major hacks occurred in DeFi protocols, totalling at ~$361 million of theft. As DeFi continues to grow in the next decade, it is likely that hacks and exploits will increase, especially as new, crypto-specific financial products and services emerge.

There is major demand for DeFi insurance among crypto users. The problem why DeFi insurance hasn't grown alongside DeFi is because competitors have not designed their offerings for scalability, simplicity, and transparency. And because current DeFi insurance hasn't grown properly, DeFi remains a risky space. If this high risk continues to exist, it will hinder expected growth of DeFi.

Solace focuses on building innovative tools that match the ever-changing needs of crypto users. That's why with Solace Wallet Coverage, users get personalized coverage and only pay for what coverage they use. We understand that the DeFi space moves quickly, and we want policyholders to feel confident about their security as they explore DeFi positions.

Born as a DAO, Solace’s mission is to create innovative and intuitive DeFi insurance products for crypto users.